What is the objective of working capital management? What is working capital? Working capital is the difference between a company’s assets and liabilities. It is a financial measure that calculates whether a company has enough liquid assets to pay its bills due within a year. When a company has excess current […]
*How to build business credit? What is business credit? Depending on your economic history, it is the same as building personal financial credit. Getting loans or credit cards or maintaining your supplier’s accounts for your business will show how you handle your finances. Connecting your credit report to your national insurance […]
A sole trader has employment income. What happens if I also have earnings from employment or dividends? If you are employed, your employer would have deducted the tax for your earning. Also, when you have other income from a side hazel, you must register yourself as self-employed and declare that in […]
Finance advise for non-finance entrepreneurs. Keep your business and personal finances separate. To save time and avoid hassles at tax time: Open a US dollar savings or checking account if you’re Canadian. I live in Canada, yet most of my freelance writing and blogging income is in US dollars. So, I […]
How do you account for partnerships? Partnership accounting is the same as accounting for proprietorship apart from having a different capital and drawings account for each partner. The fundamental accounting equation remains the same that is Assets= Liabilities + owners’ equity. Still, there will be a difference in the owner’s equity, […]
Step-by-step instructions to start charities. What is philanthropy? Philanthropy is an association that helps poor people, for example, offering garments to individuals in need and nourishment to hungry individuals, offering a place to sleep to the homeless. Somebody or a charity organization must care for these nuts and bolts. In some […]
Entrepreneurs work with no help. Entrepreneurs are trying to wear too many hats. If you are setting up a business, you should never attempt to do everything yourself without help, as it will take a long time to bring your business off the ground. You have to know your strengths and […]
What are typical cash flow problems in business? The common mistake that start-ups make in setting up the business does not have a sound financial plan. Most of the time, they miss out on essential expenses or underestimate the amount they need to spend. Budget & cash flow Starting a business […]